Deemed and non-dom tax receipts increase by 9% in 2024/25

The government’s combined tax and national insurance contributions (NIC) receipts from non-domiciled and deemed domiciled taxpayers increased by 9 per cent year-on-year in 2024/25, figures from HMRC have shown.

The data revealed that receipts for the 2024/25 tax year from non-dom and deemed domiciled taxpayers totalled £13.6bn.

Almost three quarters of this total was from income tax payments.

HMRC estimated a combined total of at least 81,900 non-dom and deemed domiciled taxpayers, as indicated in self-assessment tax returns in 2024/25.

This represented a 1 per cent fall on the previous year (83,100), with non-doms accounting for the “overwhelming majority” of the total.

Around 9,000 non-doms left the taxpaying population in 2024/25, down from 11,200 the previous year.

However, the number of newly arrived non-dom taxpayers also declined over the year, from 10,000 to approximately 8,600.

Commenting on the statistics, HaysMac head of private client, Graeme Privett, said: “This data represents the last set of information reporting under the old remittance basis system for non-domiciled individuals that was swept away from 6 April 2025.

“Whilst this shows a small reduction in the number of UK resident non-domiciled individuals and a modest increase in the total tax collected from this cohort, it does show that new arrivals are not staying as long as they previously did.

“Post-pandemic, following the relaxation of travel restrictions, the number of non-domiciled individuals recovered back to pre-pandemic levels, together with an upward push in the tax that they contributed.”

Privett noted, however, that the true effect of the abolition of the remittance basis of taxation will be borne out in next July’s figures.

“It remains to be seen as to whether those having arrived in the UK, taking advantage of the new Foreign Income and Gains (‘FIG’) regime, will step in to take their place,” he continued.

“Anecdotally, whilst the UK has attracted new arrivers, it is not clear that this cohort will remain in the UK after the end of the four-year FIG window and accept UK tax on their worldwide income and gains.

“In a competitive global market to attract high net wealth residents, one fears that the UK will continue to pique interest for the short-term residents and beneficiaries of established wealth located outside the UK, rather than the wealth creators who were initially attracted to the UK by the remittance basis system.

“Ongoing talk of wealth taxes also does not inspire longer-term confidence in the UK as a home for wealth creators.”

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